This Maharatna PSU Company is the involved in sale and generation of bulk power to State power utilities in India and is in focus after the JV agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited for operating the Chhabra Thermal Power Plant.
Stock Movement
NTPC has a market capitalization of Rs. 3,87,188 Crores. Its shares were trading at Rs. 399.45, a 0.37 percent down from the previous day’s closing price of Rs. 400.95.
What Happened
NTPC Limited has signed a Joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL). The RVUNL has a 2,320 MW plant at Chhabra on 4th November 2024. Both parties have agreed to form a 50:50 partnership JV company which will own, and operate the power plant and explore opportunities for capacity expansion. NTPC will be in control of the management.
Financials
The operational revenue of NTPC in Q2FY25 was Rs. 44,696 crore, which was down by 0.63 percent year on year to Rs. 44,963 crore in Q2FY24. Quarterly, the company’s revenue has declined by 7.88 percent to Rs. 48,521 crore.
Net profits in the same period increased by 13.83 percent year on year to Rs. 5,380 crore and declined by 2.28 percent quarterly basis.
In terms of return ratios, the return on equity stood at 13.6 percent and the return on capital employed stood at 10.5 percent. The current ratio stood at 0.93 and the company holds a high debt-to-equity ratio of 1.44 times.
Capex Plans
In the first half of FY25, NTPC incurred a capex of Rs. 17,474 crore compared to Rs. 13,204 crore compared to the previous year. The capital outlay for FY 24-25 on a standalone basis is estimated at Rs. 22,700 crore.
About the company
NTPC Limited is India’s largest power utility which focuses on electricity generation and distribution. The company was established in 1975, and they operate with a diverse portfolio which includes hydro, coal, gas, and renewable sources. The company generates electricity primarily for state utilities and also engages in consultancy, power trading, and rural electrification.
They aim to achieve a capacity of 130 GW by 2032, with a significant shift towards non-fossil fuel sources. Its business model concentrates on sustainability and efficiency while contributing to over 25% of India’s total power generation while maintaining high operational performance. As of September 2024, the NTPC group capacity stood at 76,443MW compared to 73,824MW a year ago. Recently, NTPC Green Energy its subsidiary got approval from SEBI to raise Rs. 10,000 crore.
Written by Santhosh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
